With well-informed consumers leaning toward self-medication and demanding cost reduction in healthcare, the over-the-counter (OTC) drug market outlook has been witnessing a dramatic transformation in the last few years. Since OTC drugs do not require a doctor’s visit or a known prescription, these drugs are quite cost- and time-effective. Many regulatory bodies across the globe that are responsible for deciding which drugs should be available OTC and which should be sold only based on a prescription, are now shifting an increasing number of medicines from the prescription to OTC segment. A study by CHPA in fact, had stated decades earlier, that this paradigm switch is likely to save close to $20 billion every year. The backdrop of cost-saving coupled with public demand has indeed propelled the OTC drug industry that is expected to depict a profitable growth path over 2017-2024.

Vitamins, minerals, and health supplements comprise an essential chunk of the global OTC drug market. Consumers in developed nations such as the U.S., UK, Germany, and Japan who are more aware of the benefits of taking vitamins and minerals as supplements, have depicted a tendency to purchase such medicines and administer them without the requirement of a visit to the doctor. With changing lifestyle demands such as requirements for weight loss, increased hair growth, and more, many consumers have been increasingly depending on OTC drugs, which is likely to massively stimulate OTC drug market share. Apart from supplements though, cold, cough, and flu medication and analgesics constitute a major share of the OTC drug market. Like health supplements, these are also used by consumers without the requirement of prior advice from a doctor, owing to the exponential growth of the OTC drug market size from these segments.

The OTC drug industry has been stimulated by intensive consumer demand for making certain drugs available to the public without the requirement of a prescription. For instance, lately it has been debated in the U.S. that the birth control pill should be made available to consumers without the requirement of a prescription just like the condom. As instructions for safe usage of hormonal birth control pills are very clearly mentioned in every medication pack, it is being argued by many that women need not require a doctor’s prescription for the same. The FDA at present is in discussions regarding the same, and in the event of approval, the switching of birth control pills from the prescription to OTC category will provide a major stimulus to the OTC drug market.

It is prudent to note that consumer demand also borders on the subject of making sexually transmitted infections (STI) and chronic disease medication available over-the-counter. Numerous people afflicted with chronic diseases like diabetes and cancer are known to lead rather stressful lives. In consequence, it is being argued that if they could acquire medication without requiring a visit to the doctor every time, it would decrease some of their stress. Many people apparently skip medication for STIs, solely on the premise of embarrassment or fear of judgement—deterrents that can be eradicated if STI medications are available without prescription. This circumstance has encouraged regulatory bodies to switch many medicines from prescription to OTC category, propelling the U.S. OTC drug market, which now boasts more than 700 products.

The growing appetite for self-medication and healthcare cost curtailment has led to OTC drug market expansion in major economies of the world. The U.S. with China and Japan accounted for nearly 50% of the OTC drug industry share in 2016. The growth of the OTC drug industry might slow down in the U.S. due to market saturation, but is expected to increase with a phenomenal rate in China, owing to the growing geriatric population in the country. Europe OTC drug market size is also expected to witness major expansion, driven by the fact that the governments of countries such as UK and Germany have been striving to decrease healthcare costs.

Regulatory bodies have been stringent about controlling the usage of certain drugs by keeping them confined to the prescription segment, as these drugs can be used for substance abuse. However, the growing demand from consumers about decreasing the restraints on drugs for chronic diseases and the rapidly increasing awareness regarding the correct usage of drugs will continue to stimulate the OTC drug industry. As per estimates, the OTC drug market size, which was pegged at $114 billion in 2016, is forecast to witness a compound annual growth rate (CAGR) of 5% between 2017 and 2024.

Global Market Insights
Global Market Insights Inc. is a global market research and management consulting company catering to leading corporations, non-profit organizations, universities and government institutions. For more information visit: www.gminsights.com